Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the Barnes & Powers South Business Improvement District.
Related Files: N/A
Council District #6
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The Barnes & Powers South Business Improvement District (BID) is a legal entity separate from the City of Colorado Springs. However, as required by State statute, it is necessary for City Council to review and approve the proposed 2026 Operating Plan and Budget for the BID.
In 2025, the District anticipates that it will certify 12.000 mills for debt service and 1.041 mills for operations and maintenance. Both mill levies will be lowered to 8.480 mills and 0.931 mill in 2026 respectively. Other than the mill levy change the Operating Plan and Budget for this BID includes no significant anticipated activities or changes. District activities in 2026 will focus on administration and servicing its remaining debt. The District has completed all its development and anticipates going into 2026 with only $75,000 dollars of remaining debt. The remaining debt is anticipated to be fully paid in 2026.
Background:
The boundaries of this development-specific BID were established pursuant to an election in 2004. The District is located at the southeast corner of the intersection of North Powers Boulevard and Barnes Road and contains 17.33 acres. This BID has an elected board comprised of individuals associated with Nor’wood Development Group. The District primarily exists to serve the existing Costco Wholesale Retail Store which is the only commercial entity within the District. Barnes & Power North Business Improvement District (immediately north) provides maintenance and operation services on behalf of the District.
The District is authorized to provide the acquisition of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping. The District does not anticipate any additional infrastructure work for commercial development. The primary function of the District in 2026 will be to maintain existing improvements and contributing revenue toward existing debts.
This Operating Plan and Budget is provided in format consistent with the standard template approved by Council in August 2022 for these documents.
Previous Council Action:
City Council approved creation of this BID in 2004 (Ordinance No. 04-50) and has approved the BID’s Operating Plan and Budget annually since its formation. In 2007, City Council approved issuance of $835,000 in bonds by this BID. A limited additional issuance of $73,549 was also approved in 2011. In 2014, via Ordinance No. 14-3, Council approved a very small inclusion of property (which was first excluded from the Barnes & Powers North BID), all with the intent of maintaining a property interest of the current board and thereby allowing it to continue administering this BID.
This item was introduced in a City Council Work Session on October 13, 2025.
Financial Implications:
The District issued $835,000 in privately placed Limited Tax General Obligation Bonds, Series 2007 to complete capital improvements in an area that was built by the developer as outlined in the 2007 Operating Plan. These bonds have an interest rate of 6.5% and are currently scheduled to be paid off in approximately 2026. The District also issued its Taxable Subordinate Limited Tax General Obligation Bond, Series 2011 in the aggregate amount of $73,549. All debt is anticipated to be paid off by the end of 2026. The proposed mill levy for the BID in 2026 is 9.411 mills 13.041 mills (0.931 mills for general expenses and 8.480 mills for debt service), this is a decrease of 3.63 mills as compared to the mill levy certified for 2025. The District does not currently have any outstanding developer advances.
As a separate legal entity, the financial activities of the BID are separate from those of the City, and its indebtedness is a responsibility of the property within the BID.
City Council Appointed Board/Commission/Committee Recommendation:
The BID Board of Directors recommends City Council’s approval of the 2026 Operating Plan and Budget.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Approve the Resolution approving the proposed 2026 Operating Plan and Budget for the Barnes & Powers South Business Improvement District.
Summary of Ordinance Language
N/A